Space Transportation Services Purchase Act of 1993 (HR2731)

I
103d CONGRESS
1st Session
H. R. 2731
To encourage the development of a commercial space industry in the United
States, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
July 23, 1993
Mr. Walker (for himself, Mr. Fawell, Mr. Smith of Michigan, and Mr.
Rohrabacher) introduced the following bill; which was referred jointly to
the Committees on Science, Space, and Technology, Ways and Means, Natural
Resources, Agriculture, and the Judiciary
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A BILL
To encourage the development of a commercial space industry in the United
States, and for other purposes.
==============================
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the "Omnibus Space Commercialization Act of
1993".
SEC. 2. FINDINGS.
The Congress finds that--
(1) the exploration of space holds the potential for vast new
enterprises which will benefit the United States and all of mankind;
(2) inevitably where exploration has taken place commercial activity
follows;
(3) the development of a robust commercial space industry in the
United States is required to restore and maintain United States world
leadership in the exploration, development, commercialization, and
settlement of space and to maintain the health and growth of the national
economy, meet national security objectives, and sustain the position of
the United States as a world power;
(4) the United States is in danger of losing its leadership position
in space transportation;
(5) the Federal Government should encourage, facilitate, and promote
the United States commercial space industry, including the development of
commercial launch facilities, in order to ensure United States economic
preeminence in space;
(6) creation of a space infrastructure and transportation industries
in a timely, profitable, innovative, and sustainable manner can be
accomplished only by private enterprise;
(7) incentives are needed to be put in place for private enterprise
to undertake the high risk venture of commercial space industrialization;
and
(8) commercial space activity presents unique legal problems that
need to be clarified before the full industrialization of space can go
forward.
SEC. 3. DEFINITIONS.
For purposes of this Act--
(1) the term "commercial provider" means any person providing space
transportation services or other space-related activities;
(2) the term "payload" means anything that a person undertakes to
transport to, from, or within outer space, or in suborbital trajectory,
by means of a space transportation vehicle, but does not include the
space transportation vehicle itself except for its components which are
specifically designed or adapted for that payload;
(3) the term "Secretary" means the Secretary of Transportation;
(4) the term "space infrastructure" means all facilities, equipment,
and real property (including ranges) used to perform space-related
activities;
(5) the term "space launch and launch support facilities" means space
infrastructure used--
(A) to prepare space transportation vehicles and their payloads
for transportation to, from, or within outer space, or in suborbital
trajectory; or
(B) to launch such vehicles;
(6) the term "space-related activities" includes research and
development, manufacturing, processing, service, and other associated and
support activities;
(7) the term "space transportation services" means the preparation of
a space transportation vehicle and its payloads for transportation to,
from, or within outer space, or in suborbital trajectory, and the conduct
of transporting a payload to, from, or within outer space, or in
suborbital trajectory;
(8) the term "space transportation vehicle" means any vehicle
constructed for the purpose of operating in, or transporting a payload
to, from, or within, outer space, or in suborbital trajectory, and
includes any component of such vehicle not specifically designed or
adapted for a payload;
(9) the term "United States person" means an individual, corporation,
commercial provider, or other entity organized under the laws of the
United States or a State, Commonwealth, territory, or possession of the
United States which is--
(A) more than 50 percent owned by United States nationals; or
(B) a subsidiary of a foreign company and the Secretary finds
that--
(i) such subsidiary has in the past evidenced a substantial
commitment to the United States market through--
(I) investments in the United States in long-term
research, development, and manufacturing (including the
manufacture of major components and subassemblies); and
(II) significant contributions to employment in the
United States; and
(ii) the country or countries in which such foreign company
is incorporated or organized, and, if appropriate, in which it
principally conducts its business, affords reciprocal treatment
to companies described in subparagraph (A) comparable to that
afforded to such foreign company's subsidiary in the United
States, as evidenced by--
(I) providing comparable opportunities for companies
described in subparagraph (A) to participate in Government
sponsored research and development similar to that authorized
under this Act;
(II) providing no barriers to companies described in
subparagraph (A) with respect to local investment
opportunities that are not provided to foreign companies in
the United States; and
(III) providing adequate and effective protection for the
intellectual property rights of companies described in
subparagraph (A); and
(10) the term "antitrust laws" has the meaning given it in section
1(a) of the Clayton Act (15 U.S.C. 12(a)), except that such term includes
sections 2 through 6 of the National Cooperative Research Act of 1984 (15
U.S.C. 4301 through 4305), and includes section 5 of the Federal Trade
Commission Act to the extent that such section 5 applies to unfair
methods of competition.
TITLE I--SPACE LAUNCH AND LAUNCH SUPPORT FACILITIES
SEC. 101. INVENTORY OF FACILITIES.
(a) Inventory.--The Comptroller General shall conduct a comprehensive
inventory of all space launch and launch support facilities owned by the
United States Government and shall identify such facilities that are surplus
to public and national security needs. This subsection shall be carried out
in cooperation with the Department of Defense, the National Aeronautics and
Space Administration, the Department of Transportation, the Department of
Commerce, and the General Services Administration.
(b) Report.--Not later than 12 months after the date of enactment of this
Act, the Comptroller General shall submit to the Congress a report containing
the inventory and identification required under subsection (a), including an
item by item justification of why each facility is or is not identified as
surplus. Portions of such report may be classified and protected from public
disclosure if such classification is essential to protect national security.
(c) Referral for Sale.--All facilities identified under this section as
surplus shall be referred to the General Services Administration for
disposition.
SEC. 102. COMMERCIAL SPACE CENTERS.
(a) Designation.--The Secretary shall establish criteria for the
designation of Commercial Space Centers. The Secretary shall, in accordance
with such criteria, designate appropriate launch facilities as Commercial
Space Centers.
(b) Benefits of Designation.--Commercial Space Centers, all property
located therein, all space transportation services and space-related
activities carried out therein, and all products and services created,
processed, manufactured, or otherwise arising from such space transportation
services and space-related activities, including such services and activities
in space as are launched from a Commercial Space Center and products created,
manufactured, or processed in connection therewith, and proceeds from
insurance policies insuring such services and activities, shall be exempt
from--
(1) all Federal corporate income and other taxes; and
(2) all Federal excises, imposts, duties, and any and all other
Federal tariffs.
SEC. 103. PUBLIC LAND FOR NEW SPACE LAUNCH AND LAUNCH SUPPORT FACILITIES.
(a) Facilitation of Proposals.--The Secretary of the Interior and the
Secretary of Agriculture shall facilitate proposals by commercial providers,
with or without the participation of State and local governments, to
establish new space launch and launch support facilities on public lands
administered through their respective departments through sale, lease, grant
of overflight and clearance easements, or other transfer of such lands, and
shall ensure timely review and decision regarding such proposals.
(b) Leases.--Leases described in subsection (a) shall be to commercial
providers for periods of 30 years, with options to extend for an additional
20 years. Parties signing such a lease shall enjoy occupation and use of the
lands without charge for the first 10 years of the term of the lease. The
annual lease price for the remaining 20 years, and for any period of
extension, of the lease shall be based on fair market value at the time of
the submission of the initial request for use of the land, except that lands
used for livestock grazing at the time of the signing of a lease shall be
leased at the rate charged for grazing access.
(c) Wilderness, Recreation, and Park Areas.--(1) Except as provided in
paragraph (2), no wilderness area, national recreation area, or national
park, or any part thereof, shall be transferred as described in subsection
(a).
(2) Overflight easements for extra-atmospheric flight may be granted over
such areas if the Secretary of Transportation finds that danger to the
general public is not significantly increased thereby.
(d) Noncontiguous Land Parcels.--Land parcels sold, leased, or otherwise
made available under this section need not be contiguous. Road and
communication easements shall be granted wherever practical to link such
parcels.
(e) Compatible Uses.--Proposers shall be encouraged to submit proposals
compatible with--
(1) existing uses, including livestock grazing, mining, and forest
activities;
(2) scientific activities, including aircraft research and test
flights; and
(3) other space-related activities.
TITLE II--PURCHASE OF SPACE TRANSPORTATION SERVICES
SEC. 201. SHORT TITLE.
This title may be cited as the "Space Transportation Services Purchase
Act of 1993".
SEC. 202. REQUIREMENT TO PROCURE COMMERCIAL LAUNCH SERVICES.
Section 204 of the Launch Services Purchase Act of 1990 (42 U.S.C. 2465d)
is amended to read as follows:
"SEC. 204. REQUIREMENT TO PROCURE COMMERCIAL LAUNCH SERVICES.
"(a) In General.--Except as otherwise provided in this section, the
Federal Government shall purchase launch services from commercial providers
whenever such services are required in the course of its activities.
"(b) Exceptions.--The Federal Government shall not be required to
purchase launch services as provided in subsection (a) if, on a case by case
basis the Administrator of the National Aeronautics and Space Administration
(hereafter in this section referred to as the 'Administrator'), or the
Secretary of Defense, as the case may be, determines that--
"(1) the payload requires the unique capabilities of the space
shuttle;
"(2) commercial launch services to meet specific mission requirements
are not reasonably available or would not be reasonably available when
required;
"(3) the use of commercial launch services poses an unacceptable risk
of loss of a unique scientific opportunity; or
"(4) the payload serves national security or foreign policy purposes.
Any determination of such circumstances shall be made by the Administrator or
the Secretary of Defense and shall not be delegated. The Administrator, or
the Secretary of Defense, as the case may be, shall, within 30 days after
such determination, notify the Committee on Science, Space, and Technology
and the Committee on Armed Services of the House of Representatives and the
Committee on Commerce, Science, and Transportation of the Senate in writing
of the determination and its rationale.
"(c) Federal Government Launch Vehicles.--Launch vehicles shall be
acquired or owned by the Federal Government only--
"(1) as required under circumstances described in subsection (b); or
"(2) for conducting research and development on, and testing of,
launch technology.
"(d) Phase-In Period.--Subsections (a) and (c) shall not apply to launch
services and launch vehicles for which a purchase contract has been signed
before the date of enactment of this Act.
"(e) Historical Purposes.--This title shall not be interpreted to
prohibit the Federal Government from acquiring, owning, or maintaining launch
vehicles solely for historical display purposes.".
SEC. 203. PURCHASE OF LAUNCH SERVICES.
Section 205 of the Launch Services Purchase Act of 1990 (42 U.S.C. 2465e)
is amended to read as follows:
"SEC. 205. PURCHASE OF LAUNCH SERVICES.
"(a) Competitive Bidding.--(1) Contracts to provide launch services to
the Federal Government under section 204 shall be awarded subject to
applicable Federal law requiring full, fair, and open competition, consistent
with section 2304 of title 10, United States Code, and section 311 of the
National Aeronautics and Space Act of 1958.
"(2) Submission of cost or pricing data for the purpose of supporting a
bid or proposal or for the fulfillment of a contract shall not be required of
the bidders, except in cases where only one credible bid meeting minimal
technical standards as set forth in the original solicitation is received.
"(b) Specification Systems.--Reasonable performance specifications,
rather than Federal civilian or military design or construction
specifications, shall be used to the maximum extent feasible to define
requirements for a commercial provider bidding to provide launch services.
This subsection shall not preclude the Federal Government from requiring
compliance with applicable safety standards.".
SEC. 204. COMMERCIAL SPACE LAUNCH ACT AMENDMENTS.
(a) Amendments.--The Commercial Space Launch Act (49 U.S.C. App. 2601 et
seq.) is amended--
(1) in section 4--
(A) by inserting "from Earth" after "if any," in paragraph (2);
(B) by redesignating paragraphs (9) through (12) as paragraphs
(11) through (14), respectively; and
(C) by inserting after paragraph (8) the following new
paragraphs:
"(9) 'reenter' and 'reentry' mean to return purposefully, or attempt
to return, a reentry vehicle and payload, if any, from Earth orbit or
outer space to Earth;
"(10) 'reentry vehicle' means any vehicle designed to return from
Earth orbit or outer space to Earth substantially intact;";
(2) in section 6(a), by inserting ", or reenter a reentry vehicle,"
after "operate a launch site" each place it appears;
(3) in section 6(a) (2) and (3), by striking "section 4(11)" each
place it appears and inserting in lieu thereof "section 4(12)";
(4) in section 6(a)(3)(A), by inserting "or reentry" after "such
launch or operation";
(5) in section 6(a)(3), by inserting ", or reentry of a reentry
vehicle," after "operation of a launch site" each place it appears;
(6) in section 6(b)(1)--
(A) by striking "launch license" and inserting in lieu thereof
"license";
(B) by inserting "or reenter" after "shall not launch";
(C) by inserting "or reentry" after "relate to the launch"; and
(D) by inserting "or reentered" after "to be launched";
(7) in section 6(b)(2)--
(A) by inserting "or reentry" after "prevent the launch";
(B) by striking "holder of a launch license" and inserting in
lieu thereof "licensee"; and
(C) by inserting "or reentry" after "determines that the launch";
(8) in section 6(c)(1), by inserting "or reentry of a reentry
vehicle" after "operation of a launch site";
(9) in section 7, by striking "both" and inserting in lieu thereof
"for reentering one or more reentry vehicles";
(10) in sections 8(a), 9(b), 11(a), 11(b), 12(a)(2)(B), and 12(b), by
inserting ", or reentry of a reentry vehicle," after "operation of a
launch site" each place it appears;
(11) in section 8(b), by inserting "and the reentry of reentry
vehicles," after "operation of launch sites,";
(12) in section 11(a), by inserting "or reentry" after "launch or
operation";
(13) in section 12(a)(1), by inserting "or reentry" after "prevent
the launch";
(14) in section 12(b), by inserting "or reentry" after "prevent the
launch";
(15) in section 14(a)(1)--
(A) by inserting "or reentry site" after "observers at any launch
site"; and
(B) by inserting "or reentry vehicle" after "assembly of a launch
vehicle";
(16) in section 15(b)(4)(A)--
(A) by inserting "and reentries" after "ensure that the
launches";
(B) by inserting "or reentry date commitment" after "launch date
commitment";
(C) by inserting "or reentry" after "obtained for a launch";
(D) by inserting ", reentry sites," after "United States launch
sites";
(E) by inserting "or reentry site" after "access to a launch
site";
(F) by inserting ", or services related to a reentry," after
"amount for launch services"; and
(G) by inserting "or reentry" after "the scheduled launch";
(17) in section 15(b)(4)(B), by inserting "or reentry" after "prompt
launching";
(18) in section 15(c), by inserting "or reentry" after "launch site";
(19) in section 16(a)(1) (A) and (B), by inserting "or reentry" after
"any particular launch" each place it appears;
(20) in section 16(a)(1) (C) and (D), by inserting "or a reentry"
after "launch services" each place it appears;
(21) in section 16(a)(2), by inserting "or reentry" after "launch
services";
(22) in section 16(b)(1) and (4) (A) and (B), by inserting "or
reentry" after "particular launch" each place it appears;
(23) in section 17(b)(2)(A)--
(A) by inserting "reentry site," after "launch site,"; and
(B) by inserting "or reentry vehicle" after "site of a launch
vehicle";
(24) in section 21(a), by inserting "and reentry" after "approval of
space launch";
(25) in section 21(b)--
(A) by inserting ", reentry vehicle," after "A launch vehicle";
and
(B) by inserting "or reentry" after "the launching";
(26) in section 21(c)(1)--
(A) by striking "or" in subparagraph (B);
(B) by redesignating subparagraph (C) as subparagraph (D); and
(C) by inserting after subparagraph (B) the following new
subparagraph:
"(C) reentry of a reentry vehicle, or";
(27) in section 21(c)(2), by inserting "reentry," after "launch,";
and
(28) in section 22(a)--
(A) by striking "ending after the date of enactment of this Act
and before October 1, 1989"; and
(B) by inserting "and reentries" after "further commercial
launches".
(b) Report to Congress.--The Secretary of Transportation shall submit to
Congress an annual report to accompany the President's budget request which
reviews the performance of the regulatory activities and the effectiveness of
the Office of Commercial Space Transportation.
TITLE III--INTELLECTUAL PROPERTY DISPOSITION
SEC. 301. RESEARCH UNDER CONTRACT WITH FEDERAL GOVERNMENT.
Any commercial provider making an invention under contract with the
Federal Government shall have the same rights with respect to such invention
as would a small business firm under chapter 38 of title 35, United States
Code.
SEC. 302. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS.
Section 12 of the Stevenson-Wydler Technology Innovation Act of 1980 (15
U.S.C. 3710a) is amended--
(1) in subsection (a) by striking "may permit" and inserting in lieu
thereof "shall permit, under authority of this or any other appropriate
Act,"; and
(2) in subsection (d)(1) by inserting "intellectual property," after
"equipment," both places it appears.
TITLE IV--TAX INCENTIVES FOR COMMERCIAL SPACE ACTIVITIES
SEC. 401. SHORT TITLE.
This title may be cited as the "Space Business Incentives Act of 1993".
SEC. 402. DEDUCTION FOR PURCHASE OF COMMERCIAL SPACE CENTER STOCK.
(a) In General.--Part VI of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 (relating to itemized deductions for individuals and
corporations) is amended by adding at the end thereof the following new
section:
"SEC. 197. DEDUCTION FOR PURCHASE OF COMMERCIAL SPACE CENTER STOCK.
"(a) In General.--At the election of the taxpayer, there shall be allowed
as a deduction the aggregate amount paid during the taxable year for the
purchase of Commercial Space Center stock on the original issue of such stock
by a qualified issuer.
"(b) Maximum Deduction.--
"(1) In general.--The maximum amount allowed as a deduction under
subsection (a) to a taxpayer for the taxable year shall not exceed
$100,000.
"(2) Controlled groups.--For purposes of paragraph (1), the taxpayer
and all persons who are related persons with respect to the taxpayer
shall be treated as 1 person, and the $100,000 amount in paragraph (1)
shall be allocated among the taxpayer and such persons in proportion to
their respective purchases of stock during the taxable year for which the
deduction is allowable by this section.
"(3) Allocation of deduction where more than $100,000 of stock
purchased.--If the amount of stock purchased by any person exceeds the
limitation under this subsection with respect to such person, the
deduction allowed under this section shall be allocated pro rata among
the stock so purchased in accordance with the purchase price per share.
"(c) Dispositions of Stock.--
"(1) Gain treated as ordinary income.--If any Commercial Space Center
stock with respect to which a deduction was allowed under this section is
disposed of by the taxpayer, then the lesser of--
"(A) the excess of--
"(i)(I) in the case of a sale or exchange, the amount
realized, or
"(II) in the case of any other disposition, the fair market
value of the stock, over
"(ii) the adjusted basis of such stock, or
"(B) the amount of the deduction allowed under this section with
respect to such stock,
shall be treated as ordinary income. Such gain shall be recognized
notwithstanding any other provision of this subtitle.
"(2) Interest charged if disposition within 3 years of purchase.--
"(A) In general.--If any Commercial Space Center stock is
disposed of before the end of the 3-year period beginning on the date
such stock was purchased by the taxpayer, the tax imposed by this
chapter for the taxable year in which such disposition occurs shall
be increased by the Commercial Space Center stock recapture amount.
"(B) Commercial space center stock recapture amount.--For
purposes of subparagraph (A), the term 'Commercial Space Center stock
recapture amount' means an amount equal to the amount of interest
(determined at the underpayment rate applicable under section 6621)
which would accrue--
"(i) during the period beginning on the date such stock was
purchased by the taxpayer and ending on the date such stock was
disposed of by the taxpayer,
"(ii) on the aggregate decrease in tax of the taxpayer
resulting from the deduction allowed under this section with
respect to the stock so disposed of.
"(d) Treatment Where Issuer Ceases to be Qualified.--
"(1) In general.--If--
"(A) any qualified issuer with respect to the stock of which any
taxpayer has made an election under this section ceases to meet the
requirements of subsection (e)(2)(A), and
"(B) such cessation occurs at any time before the close of the
5th taxable year ending after the date such stock was issued,
the tax treatment described in paragraph (2) shall apply to the taxable
year of the taxpayer in which such cessation occurs.
"(2) Tax treatment of taxpayer.--The tax treatment described in this
paragraph for any taxable year is--
"(A) the taxpayer shall include in income as ordinary income the
amount of the deduction allowed under this section with respect to
such stock,
"(B) the tax imposed by this chapter for such taxable year shall
be increased by an amount equal to the amount of interest (determined
at the underpayment rate applicable under section 6621) which would
accrue--
"(i) during the period beginning on the date such stock was
purchased by the taxpayer and ending on the disqualification
date,
"(ii) on the aggregate decrease in tax of the taxpayer
resulting from the deduction allowed under this section with
respect to the stock.
"(3) Disqualification date.--For purposes of paragraph (2), the term
'disqualification date' means the last day of the taxable year of the
qualified issuer in which the requirements of subsection (e)(2)(A) ceased
to be met.
"(4) Exception for small investors.--In the case of an individual,
paragraph (1) shall not apply if, on the disqualification date with
respect to any qualified issuer, the aggregate of the deductions allowed
to the taxpayer under this section with respect to stock issued by such
issuer does not exceed $5,000 ($10,000 in the case of a joint return).
"(e) Definitions.--For purposes of this section--
"(1) Commercial space center stock.--The term 'Commercial Space
Center stock' means common stock issued by a qualified issuer but only if
the proceeds of such issue are used by such issuer to establish or
operate a Commercial Space Center.
"(2) Qualified issuer.--The term 'qualified issuer' means any
corporation which, at the time of issuance of the stock involved is
conducting a business at least 75 percent of the gross receipts of which
for the taxable year are attributable to--
"(A) operations within a Commercial Space Center, or
"(B) the establishment or operation of a Commercial Space Center,
in the active conduct of a trade or business.
"(3) Related person.--A person is a related person to another person
if--
"(A) such persons are treated as a single employer under
subsections (a) and (b) of section 52, or
"(B) in the case of individuals, such persons are husband and
wife.
"(f) Special Rules.--
"(1) Amount paid after close of taxable year.--An amount paid after
the close of the taxable year for the purchase of Commercial Space Center
stock shall be treated for purposes of subsection (a) as paid during such
year if--
"(A) such amount is so paid not later than the time prescribed by
law for filing the return for such taxable year (including extensions
thereof), and
"(B) the taxpayer was under a binding contract as of the close of
such taxable year to purchase such stock.
"(2) Limitation on amount of deduction.--If--
"(A) any Commercial Space Center stock is issued in exchange for
property,
"(B) the basis of such stock in the hands of the taxpayer is
determined by reference to the basis of such property, and
"(C) the adjusted basis (for determining gain) of such property
immediately before the exchange exceeded its fair market value at
such time,
then the deduction under this section, and such adjusted basis, shall
both be reduced by the excess described in subparagraph (C).
"(g) Basis Adjustment.--For purposes of this subtitle, if a deduction is
allowed under this section with respect to the purchase of any stock, the
basis of such stock (without regard to this subsection) shall be reduced by
the amount of the deduction allowed with respect to the purchase of such
stock.
"(h) Application of Section.--This section shall apply only to stock
acquired after December 31, 1992, and before January 1, 2008."
(b) Technical Amendment.--Subsection (a) of section 1016 of such Code
(relating to adjustments to basis) is amended by striking out "and" at the
end of paragraph (23), by striking out the period at the end of paragraph
(24) and inserting in lieu thereof ", and", and by adding at the end thereof
the following new paragraph:
"(25) to the extent provided in section 197(g), in the case of stock
with respect to which a deduction was allowed under section 197."
(c) Clerical Amendment.--The table of sections for part VI of subchapter
B of chapter 1 of such Code is amended by adding at the end thereof the
following new item:
"Sec. 197. Deduction for purchase of Commercial Space Center
stock."
(d) Effective Date.--The amendments made by this section shall apply to
stock purchased after December 31, 1992.
SEC. 403. EXCLUSION OF GAIN ON SALE OF STOCK OF CORPORATION SUBSTANTIALLY
ENGAGED IN SPACE-RELATED ACTIVITIES.
(a) In General.--Part III of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 (relating to items specifically excluded from gross
income) is amended by redesignating section 137 as section 138 and by
inserting after section 136 the following new section:
"SEC. 137. GAIN ON SPACE CORPORATION STOCK.
"(a) General Rule.--Gross income shall not include gain on the sale or
exchange of space corporation stock.
"(b) Limitations.--
"(1) Maximum dollar amount.--
"(A) In general.--The maximum amount excluded under subsection
(a) to a taxpayer for the taxable year shall not exceed $100,000.
"(B) Controlled groups.--For purposes of subparagraph (A), the
taxpayer and all persons who are related persons (as defined in
section 197(c)(3)) with respect to the taxpayer shall be treated as 1
person, and the $100,000 amount in subparagraph (A) shall be
allocated among the taxpayer and such persons in proportion to their
respective sales and exchanges of stock during the calendar year in
which the taxable year of the taxpayer begins.
"(2) Excluded gain must be long-term capital gain.--Subsection (a)
shall not apply to any gain other than long-term capital gain.
"(c) Space Corporation Stock.--
"(1) In general.--The term 'space corporation stock' means common
stock acquired by the taxpayer on its original issue by a space
corporation.
"(2) Space corporation.--The term 'space corporation' means any
corporation which, during each of its 3 taxable years ending before the
date of the sale or exchange by the taxpayer, derived at least 75 percent
of its gross receipts of from the active conduct of a trade or business
involving the providing of space-related products or services. For
purposes of the preceding sentence, gross receipts attributable to
operations within a Commercial Space Center, or to the establishment or
operation of a Commercial Space Center, shall not be taken into account.
"(d) Application of Section.--This section shall apply only to stock
acquired after December 31, 1992, and before January 1, 2008."
(b) Clerical Amendment.--The table of sections for such part III is
amended by striking the last item and inserting the following new item:
"Sec. 137. Gain on space corporation stock."
(c) Effective Date.--The amendments made by this section shall apply to
stock purchased after December 31, 1992.
SEC. 404. TREATMENT OF BONDS TO FINANCE SPACE LAUNCH AND LAUNCH SUPPORT
FACILITIES.
(a) In General.--Subsection (a) of section 142 of the Internal Revenue
Code of 1986 (defining exempt facility bond) is amended by striking "or" at
the end of paragraph (10), by striking the period at the end of paragraph
(11) and inserting ", or", and by adding at the end thereof the following:
"(12) space launch and launch support facilities.
Paragraph (12) shall not apply to any bond issued after December 31, 2007."
(b) Space Launch and Launch Support Facilities.--Section 142 of such Code
is amended by adding at the end thereof the following new subsection:
"(j) Space Launch and Launch Support Facilities.--For purposes of
subsection (a)(12), the term 'space launch and launch support facilities'
means--
"(1) all facilities, equipment, and real property used to prepare
space transportation vehicles and their payloads for transportation to,
from, or within outer space, or in suborbital trajectory or to launch
such vehicles, and
"(2) all facilities, equipment, and real property used to conduct
research and development, manufacture, process, and service space
transportation vehicles and their payloads.
For purposes of the preceding sentence, the terms 'space transportation
vehicles' and 'payloads' have the respective meanings given such terms by
section 3 of the Omnibus Space Commercialization Act of 1993."
(c) Exception From Volume Cap.--Paragraph (3) of section 146(g) of such
Code is amended by striking "or (2)" and inserting ", (2), or (12)" and by
inserting "and space launch and launch support facilities" after "wharves".
(d) Certain Additional Requirements Not To Apply to Space Launch and
Launch Support Facilities Bonds.--
(1) Subsection (h) of section 147 of such Code is amended by adding
at the end thereof the following new paragraph:
"(3) Space launch and launch support facilities bonds.--Subsections
(a), (b), (c), and (d) shall not apply to any exempt facility bond
described in section 142(a)(12)."
(2) The heading for subsection (h) of section 147 of such Code is
amended by striking "and Qualified 501(c)(3) Bonds" and inserting
"Qualified 501(c)(3) Bonds, and Space Launch and Launch Support
Facilities Bonds".
(e) Federal Guaranteed Space Launch and Launch Support Facilities Bonds
Permitted.--Paragraph (3) of section 149(b) of such Code is amended by adding
at the end thereof the following new subparagraph:
"(E) Exception for space launch and launch support facilities
bonds.--Paragraph (1) shall not apply to any exempt facility bond
described in section 142(a)(12) in situations where the guarantee of
the United States (or any agency or instrumentality thereof) is the
result of payment of rent, user fees, or other charges by the United
States (or any agency or instrumentality thereof) for the use of a
facility financed with such a bond."
(f) Exception From Advance Refunding Rules.--Paragraph (2) of section
149(d) of such Code is amended by striking "bond)." and inserting "bond or
any exempt facility bond described in section 142(a)(12))."
(g) Effective Date.--The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.
SEC. 405. SPACE MANUFACTURING INCENTIVE.
(a) In General.--Part III of subchapter B of chapter 1 of the Internal
Revenue Code of 1986 (relating to items specifically excluded from gross
income) is amended by inserting after section 137 the following new section:
"SEC. 138. SPACE MANUFACTURING INCOME.
"(a) General Rule.--Gross income shall not include space manufacturing
income.
"(b) Space Manufacturing Income.--For purposes of this section, the term
'space manufacturing income' means--
"(1) income derived from the commercial sale of any product which is
manufactured in outer space and returned to Earth, and
"(2) income of an individual attributable to services performed in
outer space by such individual in a commercial space activity.
"(c) Exclusion From Tariffs, Etc.--Any product which is manufactured in
outer space and returned to Earth shall be exempt from all Federal excises,
imposts, and duties and any other Federal tariffs.
"(d) Phaseout of Benefits.--In the case of a taxable year beginning after
December 31, 2022, the amount excluded under subsection (a) shall be reduced
(but not below zero) by x/20th's of the amount excludable without regard to
this subsection, where 'x' is the number of years such taxable year is after
the last taxable year beginning before January 1, 2023. A similar rule shall
apply to the benefits under subsection (c)."
(b) Clerical Amendment.--The table of sections for such part III is
amended by adding at the end the following new items:
"Sec. 138. Space manufacturing income.
"Sec. 139. Cross references to other Acts."
(c) Effective Date.--The amendments made by this section shall apply to
taxable years beginning after December 31, 1992.
SEC. 406. STATE TAX BENEFITS FOR COMMERCIAL SPACE ACTIVITIES TO BE
ENCOURAGED.
The President shall encourage State and local governments to offer tax
and other incentives to encourage commercial space activities.
TITLE V--MISCELLANEOUS
SEC. 501. ANTITRUST EXEMPTIONS.
(a) Standing To Conduct Certain Litigation.--Notwithstanding sections 4
and 4C of the Clayton Act (15 U.S.C. 15 and 15C) and section 4 (a) and (b) of
the National Cooperative Research Act of 1984 (15 U.S.C. 4303 (a) and (b)),
standing to conduct litigation arising from causes of action under such Acts
arising out of activities carried out under this Act is reserved to the
Department of Justice under the direction of the Attorney General and the
Federal Trade Commission.
(b) Limitation on Relief.--Notwithstanding section 4(a) of the Clayton
Act (15 U.S.C. 15(a)) and section 4 of the National Cooperative Research Act
of 1984 (15 U.S.C. 4303), and in lieu of the relief specified in such
sections, the sole relief available to the United States acting on its own
behalf or on the behalf of any State or persons, in causes of action under
such Acts arising out of activities carried out under this Act, shall be
injunctive relief.
SEC. 502. EVIDENCE.
In any action against a commercial provider arising in connection with
activities carried out under this Act, evidence of the failure of such
commercial provider to follow military specifications or National Aeronautics
and Space Administration specifications shall not, in and of itself,
constitute proof of negligence on the part of a commercial provider, except
where such specifications are specifically required by contract or in cases
concerning emergency flight termination (range safety) equipment when flights
are made from launch sites owned by the Federal Government.
SEC. 503. REPORT ON LAWS THAT AFFECT SPACE COMMERCIALIZATION.
Within one year after the date of enactment of this Act, the Director of
the National Space Council, in cooperation with the Director of the Office of
Space Commerce, shall report to the Committee on Science, Space, and
Technology of the House of Representatives and the Committee on Commerce,
Science, and Transportation of the Senate on the status of laws and treaties
in the United States and internationally that affect the ability of the
United States to commercially exploit space. Such report shall include
recommendations for any changes to such laws or treaties that may be
desirable.
SEC. 504. OFFICE OF SPACE COMMERCE.
(a) Establishment.--There is established within the Department of
Commerce an Office of Space Commerce.
(b) Functions.--The Office of Space Commerce shall be the principal unit
for the coordination of space-related issues, programs, and initiatives
within the Department of Commerce. The Office's primary responsibilities
shall include--
(1) promoting private sector investment in space activities by
collecting, analyzing, and disseminating information on space markets,
and conducting workshops and seminars to increase awareness of commercial
space opportunities;
(2) assisting commercial space companies in their efforts to do
business with the United States Government, and acting as an industry
advocate within the executive branch to ensure that the Federal
Government meets its space-related requirement, to the fullest extent
feasible, with commercially available space goods and services;
(3) ensuring that the United States Government does not compete with
the private sector in the provision of space hardware and services
otherwise available from the private sector;
(4) promoting the export of space-related goods and services;
(5) representing the Department of Commerce in the development of
United States policies and in negotiations with foreign countries to
ensure free and fair trade internationally in the area of space commerce;
(6) seeking the removal of legal, policy, and institutional
impediments to space commerce; and
(7) licensing private sector parties to operate private remote
sensing space systems and supporting the private sector's role in the
commercial development of Landsat remote sensing data distribution.
SEC. 505. SPACE-RELATED RESEARCH.
(a) Required Reports.--Each Federal agency or department covered by this
section shall, within 1 year after the appropriation of the amount that
brings the agency or department under the coverage of this section, submit a
report to Congress containing a plan for activities to support space-related
research appropriate to the mission of such agency or department. Once every
2 years after the submission of such report, the agency or department shall
report to Congress on progress made in implementing such plan, together with
suggestions for any policy or legislative changes necessary to enhance the
agency's or department's ability to implement that plan.
(b) Coverage.--A Federal agency or department shall be covered by this
section if it has an annual research and development budget, for a fiscal
year ending after the date of enactment of this Act, greater than
$100,000,000.
SEC. 506. COMMERCIAL ADVERTISING.
To the extent that safety is not compromised, the United States shall
accommodate commercial advertising--
(1) by its contractors or their assigns providing space
transportation vehicles, space infrastructure, payloads, or space launch
or launch support facilities; or
(2) by persons who are engaged in activities which reuse or recycle
space transportation vehicles, space infrastructure, payloads, or space
launch or launch support facilities.
SEC. 507. PURCHASE OF SPACE SCIENCE DATA.
(a) In General.--To the maximum extent possible, the National Aeronautics
and Space Administration shall purchase from the private sector space science
data. Examples of such data include scientific data concerning the elemental
and mineralogical resources of the moon and the planets, Earth environmental
data obtained through remote sensing observations, and solar storm
monitoring.
(b) Competitive Bidding.--(1) Contracts for the purchase of space science
data shall be awarded in a process of full, fair, and open competitive
bidding among United States persons.
(2) Submission of cost data either for the purposes of supporting the bid
or for the fulfillment of the contract shall not be required of bidders.
(3) Conformance with military specifications (Milspec) or National
Aeronautics and Space Administration specification systems with respect to
the design, construction, or operation of equipment used in obtaining space
science data for the Federal Government shall not be a requirement for a
commercial provider bidding to provide such services.
(4) Contracts under this section shall not provide for the Federal
Government to obtain ownership of data not specifically sought by the Federal
Government.
SEC. 508. PROCUREMENT.
(a) Procurement Demonstration Program.--
(1) In general.--The Administrator shall establish within the Office
of Advanced Concepts and Technology a program of expedited technology
procurement for the purpose of demonstrating how innovative technology
concepts can rapidly be brought to bear upon space missions of the
National Aeronautics and Space Administration.
(2) Procedures and evaluation.--The Administrator shall establish
procedures for actively seeking from nongovernment persons innovative
technology concepts relating to the provision of space hardware,
technology, or services to the National Aeronautics and Space
Administration, and for the evaluation of such concepts by the National
Aeronautics and Space Administration's Advisory Council against mission
requirements.
(3) Requirement.--At least 10 percent of amounts authorized to be
appropriated for Commercial Programs, Research and Development, for each
fiscal year shall be used for innovative technology procurements that are
determined under paragraph (2) to meet mission requirements.
(4) Special authority.--Notwithstanding any other provision of
Federal law or regulation, in order to carry out this subsection the
Administrator shall recruit and hire for limited term appointments
persons from the nongovernmental sector with special expertise and
experience related to the innovative technology concepts with respect to
which procurements are made under this subsection. Further, in carrying
out this subsection the Administrator may waive--
(A) Federal Acquisition Regulations;
(B) Military Specifications; and
(C) cost data requirements.
(b) Report.--The Office of Space Commerce shall, within 6 months after
the date of enactment of this Act, submit a report to the President and the
Congress containing recommendations for procuring space infrastructure, space
launch and launch support facilities, and payloads using proof of concept
methods and unsolicited proposals. In preparing such report, the Office of
Space Commerce shall consult with appropriate persons in the private sector.
SEC. 509. LAND REMOTE SENSING POLICY ACT OF 1992 AMENDMENTS.
Section 105(a) of the Land Remote Sensing Policy Act of 1992 is amended--
(1) by striking paragraphs (1), (3), and (4);
(2) by redesignating paragraphs (2), (5), and (6) as paragraphs (3),
(4), and (7), respectively;
(3) by inserting before paragraph (3), as so redesignated, the
following new paragraphs:
"(1) define the roles and responsibilities of various public and
private sector entities that would be involved in the acquisition,
processing, distribution, and archiving of Landsat 7 data and in the
operations of the Landsat 7 spacecraft;
"(2) ensure that unenhanced data shall be provided to the United
States Government and its affiliated users at the cost of fulfilling user
requests, and that such data may be reproduced and disseminated to other
Federal agencies and affiliated users, on the condition that such
unenhanced data is used solely for noncommercial purposes;";
(4) in paragraph (4), as so redesignated by paragraph (2) of this
section, by striking "and" at the end; and
(5) by inserting after such paragraph (4) the following new
paragraphs:
"(5) ensure that instructional data sets, selected from the Landsat
data archives, shall be made available to educational institutions
exclusively for noncommercial, educational purposes at the cost of
fulfilling user requests;
"(6) ensure that the proposed data distribution system contributes to
the goal of the commercialization of land remote sensing; and".
SEC. 510. LAND REMOTE SENSING FOR AGRICULTURAL MANAGEMENT.
(a) Findings.--The Congress finds that--
(1) the use of land remote sensing data is potentially a valuable
resource to the agricultural community;
(2) land remote sensing data can inform the agricultural community as
to the condition of crops and the land which sustains those crops;
(3) land remote sensing data can be useful for farmers engaged in
prescription farming;
(4) land remote sensing data on agricultural conditions can be
valuable, when received on a timely basis; and
(5) the National Aeronautics and Space Administration, using the
expertise of the Earth Observations Commercialization Applications
Program, and the Department of Agriculture should work in tandem to aid
farmers to obtain data which would be conducive to sound agricultural
management and greater crop yields.
(b) Definitions.--For the purposes of this section--
(1) the term "Administrator" means the Administrator of the National
Aeronautics and Space Administration;
(2) the term "prescription farming" means a method by which farmers
can regulate the application rates of pesticides, nutrients, and water,
among other inputs, to farmlands in the exact amount necessary to
maximize crop yield, without harming the environment; and
(3) the term "data voucher" means a grant to enable farmers to
purchase land remote sensing information from commercial entities.
(c) Data Vouchers.--The Secretary of Agriculture and the Administrator
shall jointly develop a mechanism to provide farmers with data vouchers. Data
vouchers shall be distributed to farmers through the Agricultural Extension
Service, which shall contract with commercial entities to provide farmers
engaged in prescription farming with timely data on crop conditions,
fertilization and irrigation needs, pest infiltration, and soil conditions.
(d) Training.--The Secretary of Agriculture and the Administrator shall
jointly establish a program to train farmers in the use and interpretation of
land remote sensing data for prescription farming.
(e) Authorization.--Funds necessary for carrying out this section shall
be derived from funds otherwise authorized for the Agricultural Extension
Service.
(f) Sunset.--The provisions of this section shall expire 5 years after
the date of enactment of this Act.
SEC. 511. SUNSET.
Sections 102(b), 501, 502, 503, and 505 shall expire 15 years after the
date of enactment of this Act.